by Adam Sichko, Reporter
BOLTON LANDING — The head of the U.S. Chamber of Commerce told New York executives Thursday that the state needs to expand natural-gas drilling, allowing a controversial process called hydraulic fracturing.
"Everybody should have a cash cow. We must seize opportunities right in front of our faces. The damn answer is right there—grab it!" Tom Donohue said, speaking of national energy policy.
Donohue, president and CEO of the U.S. Chamber, was the keynote speaker Sept. 21 at The Business Council of New York State Inc.'s annual meeting, held at The Sagamore Resort in Bolton Landing.
"The development of the Marcellus Shale has already created hundreds of thousands of jobs and billions of dollars of government revenues in other states," Donohue said. "I’d suggest the state ... ought to look around the neighborhood. New York may be left behind."
Donohue's call for fracking in New York was hardly surprising. It drew applause from the business executives in attendance, and surely pleased David Smith, who is the Business Council's chairman and also the chairman and CEO of National Fuel Gas Co. (NYSE: NFG), based in Williamsville, Erie County.
Shale rock formations span much of upstate, with pockets of natural gas trapped inside. The process of extracting that gas is called hydrofracking, or fracking, and is controversial for its potential to harm public health, the water supply and the environment, as portrayed in the (also controversial) documentary "Gasland."
The state has been studying the issue for a few years. As it happened, Donohue's remarks came just a couple of hours after the state Department of Environmental Conservation said any new rules allowing fracking would wait even longer, until the state Department of Health first analyzes potential health impacts.
The DEC also said it expects lawsuits if, or when, final regulations are issued.
"No one objects to a thorough analysis of the potential safety concerns. That is prudent," Donohue said.
"But with 9 percent unemployment and a $2 billion deficit, New York ought to take a careful look at this opportunity," said Donohue, born and raised in New York City. "It would fuel growth at home and fill government coffers. We'd be dumb not to reduce our reliance on some of these crazy people we read about in the news every morning."